Financial Data and Key Metrics Changes - In Q2 2025, the company generated total revenue of $215 million, representing a 21% increase compared to Q2 2024, exceeding the high end of revenue guidance by $5 million [34] - Subscription revenue reached $198 million, up 23% year-over-year, with new customers accounting for 41% of the increase [34] - Non-GAAP operating margin for the quarter was 38%, outperforming guidance by 380 basis points [6][34] - The company had 6,467 customers at the end of Q2 2025, an increase of 320 customers from the previous year [35] - Gross retention rate was 97%, exceeding the internal target of 96%, while net retention rate improved to 114% from 109% in Q2 2024 [35] Business Line Data and Key Metrics Changes - Financial reporting solutions remained the primary revenue driver, with strong demand across SEC reporting, multi-entity reporting, and fund reporting [15] - The number of contracts valued over $100,000 increased by 27%, contracts over $300,000 rose by 37%, and contracts over $500,000 grew by 35% compared to Q2 2024 [8][36] - Professional services revenue was flat at $17 million, with a decline in setup and consulting services offset by higher XBRL services [34] Market Data and Key Metrics Changes - Demand for sustainability solutions moderated in the corporate account segment in both the U.S. and Europe, although it still contributed to new logo wins and account expansions [23][66] - Sustainability solutions accounted for less than 15% of total revenue, indicating a limited impact on overall financial performance [24][66] Company Strategy and Development Direction - The company is focused on profitable growth, raising its operating margin outlook for Q3 and Q4 2025 [8][40] - The strategy includes expanding the partner ecosystem and enhancing the breadth of the solution portfolio to drive innovation and reduce total cost of ownership [7][10] - The company aims to achieve its 2027 and 2030 operating margin targets, emphasizing disciplined margin expansion [9][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term prospects despite macroeconomic uncertainties, citing strong customer demand and a resilient solution portfolio [9][10] - CFO Jill Clint noted that the company is closely monitoring capital markets activity, which could provide upside potential in the second half of the year [45][46] - The management acknowledged the elongation of deal cycles due to market uncertainty but highlighted continued strong performance in signature deals [86] Other Important Information - CFO Jill Clint announced her departure after 17 years with the company, with plans to remain until December 2025 to ensure a smooth transition [29][30] - The company repurchased 132,000 shares for $10 million under its share repurchase program, with $50 million remaining from the original authorization [37][38] Q&A Session Summary Question: Revenue outlook and capital markets contribution - Management indicated steady revenue from capital markets in Q2 and noted potential upside if activity increases in the second half [45][46] Question: Financial reporting success and SEC reporting bundles - The company is adopting a "good, better, best" model to drive upsell within existing customers, contributing to strong net retention rates [48][50] Question: Concerns about generative AI and solutions-based model - Management emphasized the attractiveness of their solutions-based model, which allows customers to use the platform without seat constraints, positioning them well against generative AI technologies [55][58] Question: Sustainability portfolio and market demand - Management acknowledged a moderation in demand for sustainability solutions but remains optimistic about long-term market demand, particularly driven by regulatory requirements [66][68] Question: Free cash flow guidance and margin improvements - The company explained that free cash flow is influenced by various factors, including timing of cash inflows and outflows, and reiterated its commitment to improving margins [68][69] Question: RFP activity from CFO Act agencies - Management reported good discussions with agencies looking to modernize financial systems, indicating potential opportunities in the government sector [72][73] Question: Investment plans and headcount expectations - The company will focus on productivity and leverage existing resources while making investment decisions based on potential outcomes [107][108]